Summary from CR presentations-Update on Non-Core divestiture status forthcoming in the next while (months) - likely sales.
-Grow production to 40,000 boepd in the Montney, Dale alluded that this will be achieved by end of 2022 (a hint that they will put more CapEx to work in 2022 to fill existing processing/pipeline capacity.
-Pay down debt to <1x, so this may mean very little debt is actually paid down, driving down the ratios through production / cash flow growth.
-Once 40,000 boepd has been achieved, a juncture with 3 decisions:
1) Build a new Gas Plant (Groundbirch) to increase processing capacity - This aligns with the LNG Canada timeline also.
2) NCIB.
or.
3) Dividends.
To me, likely a combinantion of 1&2. I don't see Crew as a dividend payer.
I see Crew share price continue to climb with all of the tailwinds now and likely on or before the Groundbirch Gas Plant is built & commissioned, the full company will be sold, turnkey likely to Shell or JV partner.
Organically stock will be $4-8 range before end of 2022:
With the Groundbirch Gas Plant built and drilled to fill (2023/24), company will eventually be sold for $12-16 per share.
~The Great Cheadle.